Bank of the Philippine Islands, Southeast Asia’s oldest lender, is targeting to have 50 million customers on its digital platforms in the next three to five years to prop up earnings, according to its top official.
(Bloomberg) — Bank of the Philippine Islands, Southeast Asia’s oldest lender, is targeting to have 50 million customers on its digital platforms in the next three to five years to prop up earnings, according to its top official.
The push pits BPI against GCash of affiliate Globe Telecom Inc. in a nation where 44% of the adult population remains unbanked while competition from deposits to credit cards are feverish. GCash, the Philippines’ biggest digital wallet platform, has more than 60 million users.
BPI is rolling out an app called Vybe to provide e-wallet services to the mass market where it can offer lower fees compared to GCash and dangle rewards, President and Chief Executive Officer Jose Teodoro “TG” Limcaoco said on Monday. Vybe aims to make the digital wallet “more accessible” to more people, said the CEO who said the intention is to complement GCash.
The lender aims to deepen expansion in the digital space where it currently has about 10 million users. BPI has unveiled more than handful of apps to lure customers from different income segments with offerings in traditional banking, fintech, online investment and trading, the CEO said.
“We were willing to pay a billion dollars to buy Citibank,” Limcaoco said in an interview on Monday, referring to BPI’s attempt to acquire Citigroup Inc.’s consumer business in the country which smaller rival Union Bank of the Philippines won in 2021. “We’re only using a billion pesos and it comes back,” Limcaoco said of BPI’s push to widen digital reach.
BPI has tapped Robinsons Retail Holdings Inc., Seaoil Philippines, and Ayala Land Inc. as early partners for Vybe and more will follow, he said.
The bank will use the Vybe platform to enable customers make payments and earn rewards, “and eventually we can mine them for personal loans,” and eventually migrate them to the bank’s deposit system, the CEO said.
In an interview with Bloomberg Television’s David Ingles earlier on Monday, Limcaoco said the cash circulating in the domestic financial system remains robust and projects loan growth of 10%-12% this year. He expects the trend in profitability growth to continue after record earnings in 2022.
–With assistance from Andreo Calonzo.
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